Scenes from a recovery scenario

Equities are "more fairly valued" than bonds, CI's Eric Bushell says.

Sonita Horvitch 17 November, 2010 | 7:00PM
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 Eric Bushell, chief investment officer at Toronto-based Signature Global Advisors, makes a cogent case for equities versus bonds. The outlook for equities is positive, he says. "The recovery in the global private sector continues and this will support the stock market."

A key facet of the outlook for global economic growth, says Bushell, is the divergence between the prospects for developed economies and emerging ones. "The slow growth in indebted developed countries will be somewhat offset by stronger growth and capital flows to the developing economies."

Governments in mature economies have run up substantial deficits as a result of their stimulus measures. This "fiscal reckoning" will prove to be a drag on global economic growth. Bushell considers that "there is a 50% chance that there will be a European debt restructuring within the next year."

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Sonita Horvitch

Sonita Horvitch  

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